Found a motivated buyer, just need to put a deal together

[Huy Ly]

Hi BP,

I found a buyer that is my co-worker, and I am thinking to put a Rent-to-own contract for her. Here is the scenario:

A. I am a beginner, and this is my first deal. I dont have any house available, but I have 50k cash to put down (20%) on a 150k house, and the rest of the money paying toward closing cost, and etc... My questions are:

1. 1. Should I let her select a house with my review before buying it? If she picks a house, I will be in charge of analyzing and making a deal with the seller.
2. 2. She would like to have a multi-family house so she can stay in one unit, and rent it out the rest. How does it work when she is under rent-to-own contract, but still wants to rent my house to others? 

3. If it is ok for her to rent out the units to others. How much should I charge her? Please provide your ratio analysis if possible. And how does the maintenance work? Also, should I let her pay insurance? 

1. 4. In term of putting the legal documents, what should I need on the terms? And who could provide those documents? 

Thanks,

[Mike Osterman]

@Huy Ly  either give her the 50k. Or buy her a house.  What your trying to do is complicated for anyone much less a beginner. 

You are approaching this from the wrong angle. 

Use you money to educate yourself and marketing.